UK: Building services contractors have experienced an upturn in the market over the past six months according to a new survey by the Building & Engineering Services Association (B&ES).

Overall, a fifth of respondents had seen an increase in their order books in the past six months and with an increase of enquiries there is greater optimism about future prospects for the sector.

In contrast to the findings of the previous two state of trade surveys – undertaken in July 2012 and January 2013 – both turnover and direct employment levels were reported
to have stabilised, and there was widespread expectation that workforce numbers
would increase in the short term, along with apprentice recruitment.

Also discernible were a slowing down of the drop in tender prices, the re-emergence of skills shortages in certain disciplines and a likely increase in investment in vocational education and training.

This brighter picture was evident across the UK, with the exception of the East Midlands and Eastern Counties, where more companies reported a decline, rather than an increase,
in their six-monthly turnover.

The principal negative elements highlighted by members were rising materials and, in
some cases, labour costs, and a further increase in the prevalence of pre-qualification questionnaires – with the larger members indicating that the introduction of PAS91
as a standard pre-qualification specification for use across the construction industry
has done little so far to simplify the process.

 

Rod Pettigrew
“The findings of this survey paint a rather more encouraging picture than we have seen since the start of the downturn – and one which should provide some modest encouragement across the building engineering services sector and the wider construction industry,” commented B&ES chief executive Roderick Pettigrew.

While acknowledging that the signs of recovery were fragile at best, he added that the time had come for all organisations involved in construction to start preparing for growth in the medium to long term.

“Of course, we still have a long way to go to return to pre-recession business levels, but  it does seem that many of our members do perceive a chink of light at the end of the tunnel,” said Mr Pettigrew.

The third B&ES independent state of trade survey – covering the six months from January to June 2013 – was carried out across the Association’s membership by independent research organisation Lychgate Projects Ltd, in July. Over 150 B&ES members took part.

The Association has commissioned a further survey, covering the second half of 2013, to be conducted in January of next year.